PHOENIX — Arizona’s governor tells ABC15 that the state’s Department of Economic Security is one of the hardest hit agencies from federal cuts.
ABC15 reported in November that DES had a backlog for unemployment claims that dates back to November 2024. The ABC15 Investigators have confirmed that the state agency is processing approximately 10,000 unemployment appeals.
Unemployment insurance appeals are for people who are denied benefits but disagree with the department’s decision.
According to DES’s website, appeal hearings are scheduled "as soon as possible."
However, the department reported that as unemployment insurance claims have increased, so have appeals.
“What you’re seeing in unemployment is a direct result of federal cuts,” said Governor Katie Hobbs, “that forced almost an 80% layoff in that division. That is directly leading to this backlog.”
Hobbs said they are looking at ways to address this, “We don't want to put a band aid on it, because if we do that, we'll get through the backlog, and then we'll have another one and and so there, but there's not extra funding in that agency, and so we're addressing it the best way that we can.”
When asked if she could go to the legislature for funding for more staffing, “we can not seek a supplemental to address every single federal utility that we’re experiencing. We don’t have it,” she added.
DES officials said in a statement that the department is working on appeals:
The Department of Economic Security (DES) recognizes the crucial role that Unemployment Insurance (UI) benefits play in bridging employment gaps and is committed to addressing UI appeals as quickly as possible, ensuring individuals receive the support they require. Over recent years, DES has expanded UI appeals scheduling, hearing days, and training, adopted workflow process improvements, and supported system modernization to increase efficiency.
"These efforts aside, as UI claims have increased, so too have appeal requests. Currently, DES is processing approximately 10,000 UI appeals, with some dating back to November 2024. DES’ capacity to manage this growing workload was severely impacted by federal funding cuts, which required reductions to our workforce. With that said, we continue to work hard, ensuring we do things carefully and quickly, to prevent any further delays for eligible individuals.
People seeking unemployment benefits are also experiencing delays in being approved for benefits and adjudication.
DES said they have approximately 75 staff members currently processing UI benefits. They add that they are processing between 2,500 to 3,000 new initial claim applications for unemployment benefits each week.
